Oil prices down on US energy report

September 24, 2015 | 12:15

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Oil prices fell on Wednesday as data showing a modest rise in US production overshadowed a hefty drop in crude inventories in the world's top petroleum consumer.

Oil prices fell on Wednesday as data showing a modest rise in US production overshadowed a hefty drop in crude inventories in the world's top petroleum consumer. (AFP Photo)

NEW YORK: Oil prices fell on Wednesday (Sep 23) as data showing a modest rise in US production overshadowed a hefty drop in crude inventories in the world's top petroleum consumer.

Investor sentiment was also dented by gloomy Chinese manufacturing data which stoked fresh concern over oil demand in the Asian powerhouse.

US benchmark West Texas Intermediate for delivery in November fell US$1.88 to US$44.48 a barrel compared with Tuesday's close on the New York Mercantile Exchange. Brent North Sea crude for November delivery slid US$1.33 to stand at US$47.75 a barrel in London.

The US government's Department of Energy (DoE) reported that American commercial crude inventories sank by 1.9 million barrels in the week ending Sep 18.

However, the DoE also revealed that American oil output rose by 19,000 barrels per day (bpd) to 9.136 million bpd, snapping a six-week run of lower production. US oil prices initially went up following the report's release, but then fell.

"Sometimes it's the case the headline number at first glance is pretty bullish," said Bob Yawger of Mizuho Securities. "However, there were some bearish numbers when you go into the details a little bit."

Oil also retreated after a vital measure of manufacturing in China fell to its lowest level in more than six years, signaling weaker demand in the world's second-biggest economy.

AFP

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